Windows Live SkyDrive
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Full user review
"25GB of free awesomeness"
Its free, its well integrated into Windows Live and now you can even create, view and edit Word, Excel, PowerPoint and OneNote files.
File sizes are limited to 50MB but most docs, pictures and small videos are well under that limit.
Overall a great service with free office apps. I usually have no bad experiences with this service. This is one of the best services ever.